Which of the following would not be classified as an operating activity?
A) interest expense
B) income taxes
C) payment of dividends
D) selling expenses

Question

Quizplus · Accepted Answer

Payment of dividends is a financing activity, not an operating activity. Operating activities are related to the primary business of the company, such as revenues, cost of goods sold, and selling expenses. Interest expense and income taxes are also operating activities because they are related to the cost of doing business.

Which of the Following Would Not Be Classified as an Operating